2016 GCG ANNUAL REPORT:

MOVING FORWARD
MESSAGE OF THE CHAIRMAN
The Governance Commission for Government-Owned or –Controlled Corporations
(GCG) was created in 2011 under Republic Act No. 10149 (RA No. 10149), otherwise
known as the “GOCC Governance Act of 2011”. In the five (5) years of its actuality,
the GCG has introduced major reforms in the Sector of Government-Owned or -
Controlled Corporations (GOCCs), including the Fit and Proper Rule for Appointive
Directors and CEOs of the GOCCs and the Code of Corporate Governance.
Furthermore, performance measurement tools including the Performance Evaluation
System (PES) and Performance Evaluation for Directors (PED) were established.
Recently, the Corporate Governance Scorecard for GOCCs was also initiated with the
objective of measuring the Corporate Governance performance of the GOCCs using
a methodology benchmarked against the OECD Principles of Corporate Governance
and ASEAN Corporate Governance Scorecard.
The 2016 elections was the first time the GCG had to undergo and experience a
transition in the administration. Admittedly, it had been laborious for all the GCG
employees and officers. The transition meant that all appointed GOCC Governing
Boards must be replaced and that the new officers and employees must be oriented
with the processes, accomplishments, and ongoing tasks of the GCG and the GOCCs.
Despite the limited amount of time, by the end of 2016, 306 nominees who are
compliant with the Fit and Proper Rule were submitted to the President by the GCG.
The Governance Commission recognized the fact that filling the positions of the GOCC
governing board is vital and paramount since it will enable the agencies to fully function
and serve their mandate.
Three hundred three (303) GOCCs were established since 1984, however, most of
these GOCCs’ Directors, Trustees, and Officers of these GOCCs had given
themselves excessive allowances and bonuses including Christmas packages,
anniversary bonus, and annual grocery incentives despite the non-performance of
their agencies. Furthermore, aside from the non-performance of their mandates, some
of these GOCCs have been dormant or nonoperational for a considerable period, or
operating at a loss thereby draining the financial resources of the government. At
present, the number of active GOCCs has been trimmed down to 104. The transition
and transformation, however, did not hinder the Governance Commission to
rationalize the Sector to transform the GOCCs into an important medium for reaching
economic stability.
On March 22, 2016, former President Benigno Aquino III signed the Executive Order
No. 203 approving the Compensation and Position Classification System (CPCS). In
line with the focus of President Rodrigo Roa Duterte in his 2016 State of the Nation
Address that we must “invest in the human capital and equal access to economic
opportunities”, the objective of the CPCS is to maintain the best and the brightest
Filipinos in the government sector. By the end of 2016, total of 8 GOCCs have
submitted their proposed Job Leveling. After this stage, the GOCC shall submit their
Total Compensation Framework and Index of Occupational Services. The application
to the CPCS is a long and demanding road, but the Governance Commission is
extending all its efforts to accommodate and assist the GOCCs.
In President Duterte’s first SONA, he mentioned a number of GOCC classifications
and the projects that he will focus on during his term. The GFIs, according to him,
shall come up with out-of-the box financing packages to capacitate our small and
medium entrepreneurs. Furthermore, he also emphasized that there will be more
access roads and tourism gateways to help uplift the tourism in our country. Also, the
LRT’s operating hours shall be extended to accommodate more passengers especially
students. Moreover, procurement of additional trains shall be fast tracked. Finally, he
added that the Clark Airport can be utilized to shift some operations of our domestic
and international airlines. These projects and promises are at the top of mind of the
Governance Commission during the process of negotiation of targets and measures.
The Governance Commission is at par with the President’s mission to eradicate
corruption in the government sector. The GCG Whistleblowing Web Portal for GOCCs
was launched in April 2016 with the objective of providing concerned individuals an
online, user-friendly, and secure platform to report to GCG perceived anomalies in the
GOCC sector. This web portal (www.whistleblowing.gcg.gov.ph) does not require any
personal information of the whistleblower to maintain anonymity as prioritized in the
14 April 2014 GCG Memorandum Circular No. 2014-04 or the Whistleblowing Policy
for the GOCC Sector.
To further adopt the direction of the administration of President Rodrigo Roa Duterte
in its internal processes, the Governance Commission amended its Mission and
Vision, as well as its Strategy Map. At present, the GCG’s vision is to change the
GOCC Sector making it more responsive to the needs of public interest and in the
attainment of enhanced economic growth and development by 2020. On the other
hand, its mission is to be an efficient and effective central advisory, oversight, and
monitoring body with authority to formulate and implement policies in the active
exercise of State’s ownership rights over GOCCs, thereby ensuring their economic
viability and fiscal discipline through adherence to the highest standards of corporate
governance.
I am truly honored to be a part of the GCG - a government initiative to monitor and
oversee the GOCC Sector and ensure their transformation into a significant tool of the
government. Along with President Duterte, the GCG also places in its center, its aim
to obtain outcomes and results for the sector’s main stakeholders - the Filipino people.
THE GOVERNANCE COMMISSION

SAMUEL G. DAGPIN, JR., Chairman

Commissioner SAMUEL G. DAGPIN, JR. obtained his Mechanical Engineering
Degree from the University of Mindanao, and passed the Mechanical Engineer’s
Licensure Exam in 1991. He obtained his Bachelor of Laws Degree (Ll.B.) from
the Ateneo de Davao University in 2002, and sat for the Philippine Bar Examinations
that same year.
Commissioner Dagpin is an accomplished law practitioner, and public servant. Prior
to his appointment to GCG, he served as Deputy Secretary General of the Hugpong
sa Tawong Lungsod, and Technical Adviser on Political Affairs in both the Offices of
the Vice Mayor, and the City Mayor of Davao. He also acted as Consultant to the
Congressional Oversight Committee on Public Expenditures at the House of
Representatives. He was also a Partner of the Dagpin Galas Wong Torentera Law
Offices.
MICHAEL P. CLORIBEL, Commissioner
Commissioner MICHAEL P. CLORIBEL obtained his Bachelor’s degree in
Commerce from the Ateneo de Davao University in 2002, and his Bachelor of Laws
Degree (Ll.B.) from the Ateneo de Davao University College of Law in 2008. He
was admitted to the Philippine Bar in 2010.
Commissioner Cloribel is a dedicated public servant, and member of the academe.
Prior to his appointment as Commissioner of the GCG, he sat as member of the
People’s Law Enforcement Board in Davao City. He also served as Consultant on
Political Affairs in the Office of the City Mayor of Davao. He was also a professorial
lecturer in International Studies at the Ateneo de Davao University.
MARITES CRUZ-DORAL, Commissioner
Commissioner MARITES CRUZ-DORAL is a Certified Public Accountant (CPA) and
a licensed Real Estate Broker. She obtained her Bachelor’s degree in Accountancy
from the Ateneo de Davao University in 1993, and her Bachelor of Laws from the
University of Mindanao in 2002.
As a CPA, Commissioner Cruz-Doral’s exposure is in the field of Commerce and
Industry Sector, majority of which are banking and financial institutions. Prior to her
appointment as Commissioner of the GCG, she served as Administration Manager
and Personnel Specialist of Louis Berger Group, Inc.-Philippines, a resident foreign
consulting firm which implements foreign-funded humanitarian and development
works in Mindanao through infrastructure development, business growth, and
governance improvement, among others.
CARLOS G. DOMINGUEZ, Department of Finance Secretary, Ex-Officio Member
Finance Secretary Carlos “Sonny” G. Dominguez has over 40 years of experience
managing various organizations in the public and private sectors. He was a
shareholder, and Board Chairman or Member of over a dozen corporations across
various industries such as power, agriculture, mining, banking, hospitality, real estate,
and investment.
Notable positions held by Sec. Dominguez were Cabinet Secretary of the Environment
and Natural Resources, and Agriculture during the Presidency of Corazon Aquino,
past President of leading Philippine corporations such as the Philippine Airlines and
the Philippine Associate Smelting and Refining Corporation, and the former Bank of
the Philippine Islands Agricultural Bank.
Sec. Dominguez has a Master’s Degree in Business Administration from the Ateneo
De Manila University, and attended the Executive Management Program at the
Stanford University.
BENJAMIN E. DIOKNO, Department of Budget and Management Secretary, Ex-
Officio Member
Secretary Benjamin E. Diokno, Ph.D. is on his third tour of duty with the DBM, having
served prior as Undersecretary for Budget Operations from 1986 to 1991 and
Department Secretary from 1998 to 2001. Some of his major policy reform
contributions include: providing technical assistance to the 1986 Tax Reform Program,
helping design the 1991 Local Government Code of the Philippines, initiating a What-
You-See-Is-What-You-Get policy to streamline the release of funds, and sponsoring
the internationally-lauded Government Procurement Reform Act. As Budget Chief
under the Duterte administration, Secretary Diokno intends to pursue an expansionary
fiscal policy to finance investments in human capital development and public
infrastructure. In addition, he seeks for the passage of a Budget Reform Bill and the
Government Rightsizing Act.
GCG STRATEGY MAP

As the Governance Commission transitioned to the new administration, its Vision and
Strategy Map have been reviewed and updated to be aligned with the vision of the
Duterte Administration as expressed in AmBisyon Natin 2040.
AmBisyon Natin 2040 represents the collective long-term vision and aspirations of the
Filipino people for themselves and for the country for the next 25 years. It describes
the kind of life that people want to live, as well as how the country will look by 2040.
As such, it will serve as an anchor for development planning across at least four
administrations.
As overseer of the GOCC Sector and as a contribution towards achieving AmBisyon
Natin 2040, GCG envisions that:

By 2022, the GCG shall have changed the GOCC Sector making it more responsive to
the needs of public interest and in the attainment of enhanced economic growth and
development.

While the GCG Mission, its reason for existence, remains essentially the same:

The GCG is an efficient and effective central advisory, oversight, and monitoring body
with authority to formulate and implement policies in the active exercise of the State’s
ownership rights over GOCCs, thereby ensuring their economic viability and fiscal
discipline through adherence to the highest standards of corporate governance.
Note that there is a shift from financial viability to economic viability, as the Governance
Commission will also take into consideration gains other than financial gains, or gains
that cannot be measured financially.
The GCG Strategy Map is an overarching strategy that seeks buy-in and participation
from all our stakeholders directed towards attaining the Vision for the whole GOCC
Sector to be “more responsive to the needs of public interest and in the attainment of
enhanced economic growth and development.”
The strategic objectives contained in the GCG Strategy Map are anchored on the
themes Citizen-centered Development and Participatory Governance. Each objective
is a step towards changing the GOCC Sector into a tool for citizen-centered
development, and engaging the public in the process of creating policies for providing
quality programs and services for the Filipino people.
In a nutshell, the GCG Strategy Map tells the story of how we must sufficiently allocate
our resources to be able to equip and capacitate the organization, which is supported
by efficient internal processes, to effectively perform our mandate, and to expediently
deliver services that will impact our stakeholders. By doing all these, we hope that the
greater social impact is that we will have a transparent, economically-viable, and
service-oriented GOCC Sector.
These strategic objectives are what the Governance Commission aims to accomplish
to achieve its Vision.
GCG Strategy and Performance Scorecard
STRATEGIC
PERSPECTIVE MEASURES 2020 TARGET 2022 TARGET
OBJECTIVES
FINANCE Formulate and Budget utilization 93% utilization 95% utilization
support a rate rate per PPMP rate per PPMP
strategy-based
budget
ORGANIZATION Transform GCG Average Percentage of Percentage of
Officers into competency GCG Officers’ GCG Officers’
leading level of the competency gap competency gap
corporate organization is addressed is addressed
governance
specialists
Institutionalize Certification on ISO 9001:2015 ISO 9001:2015
Integrated Quality certified without certified without
Management Management non-conformities non-conformities
Systems Systems (QMS) but with and opportunities
opportunities for for improvement
improvement
Certification on Certification on Re-certification
ISO 27001:2013 ISO 27001:2013 on ISO
27001:2013
Institutionalize Level of SMD equipped
Strategy proficiency of to facilitate PGS
Management GCG Officers in Training on
Strategy Performance
Management Governance to
GCG Employees
INTERNAL Enhance Number of 2 GOCCs 2 GOCCs
PROCESS competitive GOCCs with
neutrality conflicting
regulatory and
commercial
functions
recommended
for decoupling
Institutionalize Percent of the 100% 100%
the Whistleblowing
Whistleblowing Reports resolved
Policy with final action
from the GCG
within 45
calendar days
from receipt of
complete
documents
Raise Corporate GOCC Sector A GOCC Sector A GOCC Sector
Governance to average score in average score of average score of
international the Corporate 65% in the CGS 75% in the CGS
standards Governance
Scorecard (CGS)
 Intensify Percentage of 80% 100%
performance GOCCs with
monitoring Performance
Scorecard with
validated
quarterly
monitoring report
STAKEHOLDERS Rationalize the Number of 80% 100%
GOCC Sector GOCCs
rationalized/
reorganized
Number of 11 0
GOCCs
recommended
for dispositive
action
Promote Percent of users 60% of users 75% of users
participatory rate the ICRS rate the ICRS rate the ICRS
governance in Public Portal as Public Portal as Public Portal as
the GOCC Satisfactory Satisfactory Satisfactory
Sector through
the ICRS
Implement a Number of 34 GOCCs have All GOCCs have
Compensation GOCCs that implemented the implemented the
Framework that have CPCS CPCS
attracts and implemented the
retains the best Compensation
and the brightest and Position
for the GOCC Classification
Sector System (CPCS)
SOCIAL IMPACT A transparent, Percent of 60% of GOCCs 75% of GOCCs
economically GOCCs with with Satisfactory with Satisfactory
viable, and Satisfactory rating rating
service-oriented rating
GOCC Sector
RATIONALIZING THE GOCC SECTOR
The Governance Commission has reduced the number of GOCCs from 158 in 2011
to 103 in 2016 through abolition, privatization, rationalization and reorganization of
poor performing or non-performing GOCCs.
2016 saw the approval of the abolition of Philippine Veterans Assistance Commission
(PVAC), Philippine Veterans Investment Development Corporation (PHIVIDEC),
Panay Railways Inc. (PRI) and AFP-Retirement and Separation Benefits System
(AFP-RSBS). The privatization of Southern Utility Management, Inc. (SUMSI) was also
approved in the same year, bringing the total number of abolished, and privatized
GOCCs to 29. In addition, a total of 23 GOCCs have been declared inactive in 2016.
Sector No. of GOCCs
Government Financial Institutions 28
Trade, Area Development, and Tourism 20
Educational and Cultural 5
Gaming 2
Energy and Materials 13
Agriculture, Fisheries, and Food 11
Utilities and Communications 18
Healthcare Services 1
Realty Holding Companies 5
Coconut Industry Investment Fund Companies 20
and Holding Companies
Total Current Coverage 123

GOCCs Approved for Abolition 26

GOCCs Approved for Privatization 3
GOCCs Declared Inactive/Non-Operational 23

The evaluation and final disposition of applications by GOCCs for

rationalization/reorganization remain the top priorities of the Governance Commission
since its constitution in 2011. Such rationalizations/reorganizations are meant to
empower the GOCCs to have a manpower complement that is more responsive to the
needs of their corporation, allow them to more efficiently and effectively pursue
programs covered by their mandates, and improve their performance as a GOCC.

Clark Development Corporation (CDC)

Clark Development Corporation (CDC) was established as a subsidiary and the
implementing arm of the Bases Conversion Development Authority (BCDA) to manage
the Clark Special Economic Zone (CSEZ). CDC undertook a reorganization to enable
it to improve the investment viability of the Clark Freeport Zone, generate more
employment for the locals, improve customer service and resolve service to locators,
and resolve land-banking issues and ancestral domains.
The Reorganization Plan of CDC decreased its Staffing Pattern by 352 positions or
35% from 1,009 positions to 657 positions, organized into 38 organizational units.
Furthermore, 72 filled positions classified as coterminous with the incumbent are
retained and will be abolished once vacated. Impact on compensation with
implementation of reorganization is a decrease of P72.44 Million, inclusive of
coterminous-to-incumbent (CTI) and P105.85 Million, net of CTI.

National Housing Authority (NHA)

The objective of the reorganization of the National Housing Authority (NHA) is to
enable and make the organization responsive and competitive in line with the strategic
shift of decentralization and strengthening of regional operations.
The Reorganization Plan modifies NHA’s organizational structure, and increases
NHA’s plantilla from 2,462 to 2,918 positions, excluding 43 CTI positions, or a net
addition of 456 positions.
The Personnel Services (PS) cost under the restructured PS is estimated at P1,385
Million, which is 44% higher than the P958 Million (including the cost of Emergency
Hires placed in regular positions) under the existing organizational structure and
staffing pattern (OSSP).
The Restructuring Plan of NHA is expected to improve service delivery, particularly in
the regions in terms of area coverage, production, monitoring, collection and socio-
economic development.

Social Security System – Head Office

Consistent with its mandate of extending social security protection to workers and their
beneficiaries, the approval of the SSS Restructuring Plan (RP) is expected to improve
SSS’ service delivery in the areas of membership coverage, collections, processing
time and accessibility of its services.
With the approved RP, SSS Head Office is now composed of 31 divisions and 112
departments—a significant increase from its 17 divisions and 55 departments prior to
the approval of RP. The approved RP also allowed a net increase of 1,136 plantilla
positions (51%) to 3,368 from its previously authorized 2,232 plantilla positions in the
Head Office
Anchored in the 5-Year Roadmap of SSS, the changes in the staffing pattern are
expected to increase the registered and paying members of SSS by 2019 to P38.79
million and P15.64 million, respectively, and yield service delivery improvements
particularly in the processing time of frontline services from 61.55 working days down
to 3 working days, depending on the nature of claim.

Sugar Regulatory Administration (SRA)

SRA’s organizational strengthening is anchored on its roles in promoting the
growth and enhancing the competitiveness of the sugarcane industry through the
implementation of the Sugarcane Industry Road Map and Sugar Industry Development
Act of 2015 (SIDA), as well as advancing the industry diversification thrusts and
ensuring safety nets by providing quality regulatory and extension services.
SRA’s new structure is composed of fifty (50) organizational units and four hundred
forty-eight (448) plantilla positions which represent an increase of seventeen (17)
positions (or 4%) from its authorized plantilla of four hundred thirty-one (431). The ratio
of technical-to-support positions is also increased from 11:9 to 4:3. Such changes will
accordingly result in a 12% increase in annual payroll cost to P149 Million or an
increase of P15 Million. As a whole, this organizational strengthening is expected to
support SRA in the performance of its core functions more effectively with
the structural changes that is expected to correct the loose ends and close the
functional gaps in the existing structure and staffing.
GOCC SECTOR FINANCIALS
ASSETS
Total assets of the Sector increased by P293.91 Billion or 4.64% from 2015 despite
decreases in the assets of most of the GOCCs. In terms of absolute amount, GOCCs
under the Energy and Materials Sector had the biggest downward change amounting
to P72.89 Billion decrease in 2016 primarily brought about by the P67 Billion decrease
of the total assets of the Power Sector Assets and Liabilities Management Corporation
(PSALM). The decrease in the total assets of PSALM was due to the receipt of
receivables which was used to pay off its liabilities. The net increase from 2015 in the
total assets of the entire GOCC Sector was leveraged by substantial increases mainly
from the continued expansion of government banks and Social Security Institutions as
well as government enterprises under Trade, Area Development and Tourism Sector.
Collectively, the Government Financial Institutions (GFI) Sector accounts for 66% of
the total assets of the GOCC Sector at P4.37 Trillion.
Assets of the GOCC Sector
2015 2016
GOCC Sector Change
(in P Million) (in P Million)
Government Financial Institutions 3,991,574.94 4,367,863.87 9.43%
Trade, Area Development and Tourism 315,543.17 336,380.21 6.60%
Educational and Cultural 12,887.58 10,990.40 -14.72%
Gaming 52,669.95 50,175.72 -4.74%
Energy and Materials 1,343,783.75 1,270,896.48 -5.42%
Agriculture, Fisheries and Food 55,796.31 51,742.09 -7.27%
Utilities and Communications 557,345.75 535,458.76 -3.93%
TOTAL 6,329,601.46 6,623,507.52 4.64%

LIABILITIES
On the other hand, liabilities totaled P3.60 Trillion in 2016, representing a 5% increase
from the previous year. Except for both the GFIs and Trade, Area Development and
Tourism Sectors, all other sectors reported a decline in total liabilities with an overall
decrease of P84.09 Billion for the year. Of the enterprises under these sectors that
reported decline in liabilities, the most notable are from PSALM with a decrease of
P55.62 Billion and Philippine National Railways (PNR) with that of P26.96 Billion.
Majority of the total liabilities of the GOCC Sector is from the GFIs and Energy and
Materials Sectors accounting for 59% and 26%, respectively, of the 2016 balances.

Liabilities of the GOCC Sector

2015 2016
GOCC Sector Change
(in P Million) (in P Million)
Government Financial Institutions 1,873,211.29 2,114,611.12 12.89%
Trade, Area Development and Tourism 91,148.06 104,499.04 14.65%
Educational and Cultural 1,714.00 978.16 -42.93%
Gaming 37,609.26 33,056.60 -12.11%
 Energy and Materials 971,057.36 920,410.14 -5.22%
Agriculture, Fisheries and Food 182,007.59 180,709.46 -0.71%
Utilities and Communications 271,535.13 244,681.44 -9.89%
TOTAL 3,428,282.69 3,598,945.97 4.98%

NET WORTH
The 4.22% increase in the net worth amounting to P122.45 Billion may be attributed
to the overall improvement in the GFI Sector, specifically to Social Security Institutions,
namely, Government Service Insurance System (GSIS), Home Development Mutual
Fund (Pag-IBIG), and SSS. The net worth of the aforesaid GOCCs increased by, P57
Billion, P37 Billion, and P30 Billion, respectively. Total net worth of the GOCC Sector
improved together with assets, with an increment of P294 Billion (4.6%) which more
than covers the parallel increase in liabilities, amounting to P171 Billion.
Consistent with the change in net worth, the GFI Sector also has the highest
contribution in the change in assets, amounting to P376 Billion. This is an indicator
that the financial health of the GFI Sector is a controlling factor in the overall growth of
the GOCCs.
Net Worth of the GOCC Sector
2015 2016
GOCC Sector Change
(in P Million) (in P Million)
Government Financial Institutions 2,118,363.65 2,253,252.75 6.37%
Trade, Area Development and Tourism 224,395.11 231,881.17 3.34%
Educational and Cultural 11,173.59 9,214.78 -17.53%
Gaming 15,060.68 17,119.11 13.67%
Energy and Materials 372,726.40 350,486.33 -5.97%
Agriculture, Fisheries and Food -126,211.28 -128,967.38 -2.18%
Utilities and Communications 285,810.62 290,777.31 1.74%
TOTAL 2,901,318.77 3,023,765.81 4.22%

NET LENDING
Net Lending refers to the advances made by the National Government (NG) for the
servicing of guaranteed and re-lent domestic and foreign borrowings of GOCCs.
Records from Bureau of the Treasury (BTr) shows that net lending of GOCC in 2016
increased by P17 Billion or 7% from the previous year. This can be attributed to the
increase in NG advances to PSALM (P10.31 Billion), National Food Authority (NFA)
(P2.78 Billion), National Irrigation Administration (NIA) (P2.28 Billion), and Light Rail
Transit Authority (LRTA) (P2.03 Billion).
COMPREHENSIVE INCOME
The adjusted comprehensive income is used for this report to show a better measure
of the financial performance of GOCCs. This normalizes the earnings by removing the
effects of subsidies, unrealized gains and losses and income from subsidiaries. The
adjusted comprehensive income of the GOCC Sector slightly decreased by 3.44%
from P160.34 Billion in 2015 to P154.83 Billion in 2016. While some of the GOCC
Sectors improved in their comprehensive income, the over-all decrease was driven by
several sectors namely: Energy and Materials, Agriculture, Fisheries and Food, and
Utilities and Communications Sectors.
There were also notable increases in adjusted comprehensive income, among these
were DBP Data Center, Inc. (DCI) with an increase of 548%, Philippine International
Trading Corporation (PITC) with 374%, and Sugar Regulatory Administration with
316% increase. Partido Development Administration (PDA) was also able to turn
around P4.33 Million in losses in 2015 to a gain of P9.33 Million in 2016.
Adjusted Comprehensive Income of the GOCC Sector
2015 2016
GOCC Sector Change
(in P Million) (in P Million)
Government Financial Institutions 141,955.11 142,152.49 0.14%
Trade, Area Development and Tourism 2,308.50 3,320.16 43.82%
Educational and Cultural -269.30 9.43 103.50%
Gaming 6,827.88 7,560.99 10.74%
Energy and Materials -7,973.34 -8,125.04 -1.90%
Agriculture, Fisheries and Food -879.1 -1,498.99 -70.51%
Utilities and Communications 18,370.66 11,411.28 -37.88%
TOTAL 160,340.40 154,830.32 -3.44%

SUBSIDIES
There is a need to correct the perception of the public on subsidies as the term
‘subsidy’ has been equated to the underperformance of agencies, which leads to the
inability to cover its operating expenses and corporate deficits and losses. While this
may be true in some cases, about 98% of subsidies released to GOCCs are program
or project subsidies. Program or project subsidies are funds coursed through GOCCs
to more efficiently implement specific projects or programs in fulfillment of the vision
of the National Government. Thus, movement in the amounts of government subsidies
could not be considered as an accurate measure of the performance – financial or
otherwise – of GOCCs.
Program subsidies given to GOCCs have different intent and purpose depending on
the priority of the government. Subsidies can be used to implement infrastructure
projects; a concrete example are the infrastructure projects implemented by NIA and
NHA. Fifteen percent of the P76 Billion total subsidy released to GOCCs in 2015 was
given to NIA for the construction, operation, and maintenance of national and
communal irrigation systems. Per the latest data of NIA dated December 2015, about
1.7 million hectares out of the 3.1 million hectare irrigable agricultural lands have been
developed for irrigation. In 2016, there was a notable increase in the subsidy received
by NIA. The share of NIA in the total subsidies given to GOCCs is at 21%, which was
used for the same purpose as 2015. The NHA received government subsidy
amounting to P11 Billion and P12 Billion in 2015 and 2016, respectively, which was
used for the construction of housing needs and resettlement of informal settlers,
residents in danger areas, and calamity victims. The National Electrification Authority
(NEA) uses its subsidy for the various electrification and line enhancement projects
across the country to ensure citizen’s access to electricity.
Aside from implementation of infrastructure projects, program subsidies are used to
fund the provision of basic human needs and protection of the vulnerable sector of the
society. Programs such as provision of universal health care services implemented by
Philippine Health Insurance Corporation (PhilHealth) deliver direct benefits to its
intended beneficiaries. Funds coursed through PhilHealth are used to cover the
payment of premium contributions and medical claims of the subsidized sector such
as the indigent members, senior citizens, and sponsored members. Subsidies coursed
through the Philippine Crop Insurance Corporation (PCIC) are used to cover the
payment of insurance premium of farmers and fisher folks to protect them and cushion
the effects of damages or losses arising from, but not limited to, calamities and pests.
Subsidies to the GOCC Sector
2015 2016
GOCC Sector Change
(in P Million) (in P Million)
Government Financial Institutions 38,950 48,016 23.28%
Trade, Area Development and Tourism 11,564 13,946 20.60%
Educational and Cultural 390 471 20.77%
Gaming 0 0 0
Energy and Materials 4,794 4,126 -13.93%
Agriculture, Fisheries and Food 4,519 6,454 42.82%
Utilities and Communications 15,323 23,263 51.82%
TOTAL 75,540 96,276 27.45%

Source: Bureau of the Treasury

Program Subsidies and Notable Uses

In P Million 2013 2014 2015 2016
Amount of Program Subsidy 72,434.59 74,380.33 125,255.44 87,120.63

Amount
Notable Uses in 2016
(In P Million)
Universal Healthcare (premiums of indigent families) 43,776
Housing and Resettlement Programs 12,040
Electrification of Sitios and Other Missionary Areas 3,146
Food Security and Stabilization Programs 4,250
Coconut Planting/Replanting Program 1,627

Source: Department of Budget and Management

DIVIDENDS
The GOCC Sector continued to return significant amount of its income to the national
coffers through dividend remittances. Under R.A. No. 7656, s. 1993, otherwise known
as the “Dividends Law,” GOCCs are required to declare and remit at least fifty percent
(50%) of their annual net earnings as cash, stock or property dividends to the National
Government. The law also provides exemption to Social Security Institutions such us,
but not limited to: GSIS, Pag-IBIG, SSS, Philhealth and Employees Compensation
Commission (ECC).
The dividends turned over to the BTr in 2016 are based on the total earnings of the
GOCC in 2015. For 2016, the BTr has recorded a total amount of P26.66 Billion
dividends received from the GOCC Sector covered by R.A. No. 10149. This is 17%
lower than the 2015 total amount of P32.25 Billion, wherein several GOCCs, such as
National Development Corporation (NDC) and Food Terminal, Incorporated (FTI),
posted extraordinary increase in dividend remittances. Moreover, the number of
remitting GOCCs declined from 48 in 2015 to 42 in 2016 as well. The noticeable
decline in the amount of dividends and the number of GOCCs that remitted for 2016
can be primarily attributed to lower earnings compared with the previous year.
Despite of the subpar performance, 8 GOCCs have still managed to be included in the
so-called “Billionaire’s Club” for having remitted at least P1 Billion to national
government. These are LBP (P6.6 Billion), MCIAA (P5.06 Billion), DBP (P2.34 Billion),
PDIC (P2.28 Billion), PPA (P2.16 Billion), PAGCOR (P1.89 Billion), MIAA (P1.58
Billion) and PRA (P1.09 Billion). Below is a table showing the top ten (10) remitting
GOCCs:
Dividends Remitted by GOCCs
2015 2016
GOCC
(in P Million) (in P Million)
1. LandBank 6,000.00 6,600.00
2. MCIAA 162.6 5,062.13
3. DBP 2,535.54 2,341.13
4. PDIC 2,130.96 2,278.56
5. PPA 1,799.52 2,158.46
6. PAGCOR 5,000.00 1,898.32
7. MIAA 1,312.54 1,578.99
8. PRA 1,208.83 1,090.72
9. CDC 400.00 700.00
10. PNOC-EC 750.17 359.60
TOTAL GOCC SECTOR 32,248.91 26,655.83
RELIABLE AND ACCESSIBLE FINANCIAL SYSTEM
GOCC 2014 2015 2016
DBP Total amount of loans provided to financed 92.894 96.902 121.12
development projects Billion Billion Billion
LandBank Loans to Priority Areas (Small Farmers & 289.50 329.90 440.40
Fishers, MSMEs, Agriculture & Fisheries, Billion Billion Billion
other government programs)
PDIC P129.955 Billion Funds available as 5% 5.6% 5.7%
insurance to Depositors. 100% of valid
claims settled within the agreed processing
time of 3 to 25 working days, depending on
the account balance and number of
branches

EXPANDING THE COUNTRY’S SOCIAL PROTECTION

GOCC 2014 2015 2016
PhilHealth Percentage of accredited hospitals 96.80% 100% 100%
(1882
hospitals)
No out-of-pocket charges for indigent 40% 51% 63%
patients identified by DSWD
SSS Benefits released 102.82 112.56 132.98
Billion Billion Billion
Number of short-term educational loans 72,451 70,154 80,881
disbursed
GSIS Percentage of Social Insurance Claims and 90.58% 96.38% 98.07%
Benefits Processed within Turn-around
time

ACCESS TO SECURE SHELTER

GOCC 2014 2015 2016
HDMF Short-term loans (multi-purpose loans and 38.14 42.43 45.795
calamity loans) availment Billion Billion Billion
Multi-Purpose Loans: P44.117B
Calamity Loans: P1.678B
Number of borrowers of short-term loans 1,875,760 2,073,171 2,154,986
Multi-Purpose Loans: P2,039,848
Calamity Loans: P115,138
Housing loan availment 51.404 55.762 72.464
Actual Take-outs: P57.313B Billion Billion Billion
Pending for Take-out: P15.151B
Number of houses financed 66,198 72,270 93,383
Actual Take-outs: 76,247
Pending for Take-out: 17,136
 NHA Number of housing units for informal settler 175,516 89,347 105,825
families living along danger areas and
those affected by government
infrastructure projects as well as those
displaced and rendered homeless by
natural or man-made calamities
HGC Total value of loans guaranteed 97.250 119.996 149.17
Billion Billion Billion
SHFC Housing loans to underprivileged families 20,208 24,144 23,702
Number of Informal Settler Families living 7,088 11,203 13,226
in danger areas relocated through the High
Density Housing Program
NHMFC The purchase of housing receivables 353.71 708.6 1.01 Billion
improves the liquidity of financial Million Million
institutions and developers enabling them
to engage in more social housing projects

UTILITIES FOR THE COMMON GOOD

GOCC 2014 2015 2016
LWUA Percentage of Operational Water Districts 67.59% 68.85% 69.24%
with the capacity to supply water 24/7 (511/756) (515/748) (520/751)
NEA Amount of loans given to Electric 2.53 Billion 2.02 Billion 3.15 Billion
Cooperatives through financial assistance
packages
Number of completed and energized sitio 9,567 10,361 3,335
projects
NAPOCOR Availability of power supply in far-flung 66.37% 67.57% 72.50%
areas
Power outage rate 0.20% 0.14% 0.13%

ACCELERATING INFRASTRUCTURE DEVELOPMENT

Increased Passenger Volume 2014 2015 2016
MIAA 34.09 Million 36.58 Million 39.53 Million
MCIAA 5.50 Million 7.70 Million 8.75 Million
CIAC 718,438 738,249 855,659
PPA 56 Million 62.74 Million 68.10 Million
CPA 16.28 Million 18.20 Million 18.30 Million
Cargo Volume 2014 2015 2016
MIAA 519,738 MT 586,891 MT 630,166 MT
PPA 207 Million MT 223.64 Million 249.57 Million
MT MT
CPA 34.90 Million MT 42.50 Million MT 44.70 Million MT
PROMOTING WORLD CLASS TOURISM
GOCC 2014 2015 2016

TPB International Tourism Arrivals from key 4.5 Million 4.7 Million 5.18 Million
markets Germany, South Korea, China

PROPELLING THE GAMING AND ENTERTAINMENT

INDUSTRY
GOCC 2014 2015 2016
PAGCOR Industry Gross Gaming Revenue 110 Billion 125.36 149.12
Billion Billion
Total Contributions to the National 25.39 34 Billion 35.68
Government Billion Billion
PCSO Financial assistance provided for Medical 5.412 8.461 9.328
Assistance and Health and Welfare Billion Billion Billion
Programs

ACCELERATING GROWTH THROUGH REGIONAL

DEVELOPMENT
GOCC 2014 2015 2016
CDC Number of jobs generated in CFZ 84,024 13,668 20,192
Total new committed investments in CFZ $188.44 $353.69 $1,054.42
Million Million Million
JHMC Number of jobs generated in JHSEZ 4,050 5,090 5,523

COMPETITIVE AND SUSTAINABLE FOOD PRODUCTION

GOCC 2014 2015 2016
NDA Number of liters of liquid milk 20.01 Million 20.38 Million 21.16 Million
produced locally, decreasing amount Liters Liters Liters
of liquid milk imported to 70%
NIA Irrigable areas (ha) 1,344,760.89 1,370,462.98 1,322,838.54
PCIC Number of subsistence farmer 917,814 1,194,932 1,042,045
enrolled in crop protection
(insurance)
SRA Raw sugar production *decline is due 2.46 Million 2.32 Million 2.24 Million
to El Niño MT MT MT
Sugarcane yield has increased 58.74 tonnes 56.09 tonnes 56.25 tonnes
cane/hectare cane/hectare cane/hectare
RAISING CORPORATE GOVERNANCE STANDARDS
Established on 08 October 2015, the Corporate Governance Scorecard (CGS) for
GOCCs was developed using a methodology benchmarked against the Organisation
for Economic Co-operation and Development Principles of Corporate Governance
(OECD Principles) and the ASEAN Corporate Governance Scorecard (ACGS).
Through the CGS, the Governance Commission seeks to raise the corporate
governance standards of GOCCs and give recognition to well-governed GOCCs.

ASEAN Corporate Governance Scorecard as Benchmark

The CGS was patterned after the ASEAN Corporate Governance Scorecard (ACGS)
jointly developed by the Asian Development Bank (ADB) and the ASEAN Capital
Markets Forum. Premised on the OECD Principles, the ACGS was created to
encourage publicly listed companies (PLCs) to adopt internationally recognized best
practices in corporate governance. The assessments on PLCs were based on publicly
available and accessible information such as corporate websites and annual reports.
Since 2011, the ACGS was used as a diagnostic tool by PLCs to identify gaps in their
corporate governance practices as well as assist in achieving sustainable long-term
growth, resilience and value creation. In addition, the well-governed PLCs were
awarded and given recognition, enhancing their visibility and credibility to the global
market.

Development of the Corporate Governance Scorecard for the GOCC Sector

The CGS helps the Governance Commission and GOCCs identify and assess the
latter’s strengths and weaknesses by evaluating their level of adherence to existing
corporate governance provisions, best practices and international standards of
corporate governance. The CGS assesses the policies and practices of GOCCs in
terms of their relationship with stakeholders, asking questions such as “Does the
GOCC stipulate the existence and scope of its effort to address customer’s welfare?”
It also assesses the disclosure and transparency of GOCCs by checking the quality of
the content of a GOCC’s Annual Report. Lastly, the CGS assesses the practices of
the GOCC in terms of the responsibilities of the Board, asking questions such as,
“Does the GOCC disclose how it implements and monitors compliance with the code
of ethics or conduct?”
The CGS also works with the Performance Scorecard of GOCCs as it ensures
improvement of transparency of GOCCs’ corporate governance initiatives and
practices. With these, the Governance Commission envisions the GOCCs to be at par
with the ASEAN state-owned enterprises.
As the ACGS is being implemented in PLCs and corporations in the Philippines, the
Governance Commission sought to similarly instigate the tool in the GOCC Sector.
However, since the ACGS was created for private companies, there existed a need
for its modification before it is used by the GOCCs. In 2014, the Governance
Commission, in partnership with the Institute of Corporate Directors (ICD), pioneered
several research and consultations to create the Corporate Governance Scorecard
(CGS) for GOCCs. The ICD brought in relevant studies including their years of
experience implementing the ACGS in PLCs, corporations and insurance companies.
The Governance Commission further enhanced the scorecard through integration of
practices by international institutions such as the International Corporate Governance
Network. The Governance Commission also drew references from other sources that
set corporate governance standards, such as the ADB’s Corporate Governance
Principles of Business Enterprises and UK Corporate Governance Code.
To ensure that the CGS
is suited for GOCCs,
the Governance
Commission initiated a
series of consultations
with the GOCCs’ Board
Members, Compliance
Officers, Corporate
Planning Officers and
Corporate Secretaries.
In 2015, GOCC
representatives
Stakeholder Consultation with Board Members held on 09 October 2015. participated in focus
group discussions with
the Governance Commission and ICD to thoroughly look into the criteria and items in
the CGS. The scorecard was scrutinized to determine which items are best applicable
to the GOCCs. As jointly agreed, the GOCC representatives and the Governance
Commission resolved to exclude the items in the scorecard that were solely applicable
to private corporations. After the initial consultation, the scorecard was revised to
incorporate the suggestions raised. Another round of consultations were later
conducted with the GOCC representatives to once again gather their insights and
further refine the scorecard. Moreover, in order to encourage the GOCCs to go beyond
national legislative requirements, the Governance Commission also resolved to
exclude items already being required by the Commission’s memorandum circulars and
by national laws.
Following the OECD Principles of Corporate Governance for State-owned Enterprises,
the CGS would assess each GOCC’s governance policies and practices on the
following categories: Stakeholder Relationships, Disclosure and Transparency, and
Responsibilities of the Board. The CGS consists of sixty-six (66) questions across the
three categories, with a total weight of 100.00%.

Establishment of Baseline CGS Data

Co-created with corporate governance experts and stakeholders, the Governance
Commission rolled out the CGS to ninety (90) GOCCs during the first quarter of 2016.
To establish baseline,
2014 data of GOCCs were
assessed during the initial
implementation. After the
assessment, findings
showed that in terms of
corporate governance
policies and practices, the
current condition of the
GOCC Sector needed
much improvement,
having a broad gap from
the standards set by The PDIC receives an Award of Excellence on CGS ranking 1st among 90 GOCCs.
international best practices. Results showed that GOCCs commonly have the category
on Disclosure and Transparency as their strongest, and the category on Stakeholder
Relationships as their weakest.
Among the 90 GOCCs evaluated, 5 scored fairly. The top performer was the Philippine
Deposit Insurance Corporation (PDIC) garnering a total score of 94.50%. Following
PDIC are 4 other GOCCs that scored at least 80.00%, namely, the Land Bank of the
Philippines (LBP) with 89.50%, the Poro Point Management Corporation (PPMC) with
86.00%, the Philippine Crop Insurance Corporation (PCIC) with 80.50% and the
Philippine Amusement and Gaming Corporation (PAGCOR) with 80.50% as well.
An Exit Conference with the GOCCs was held to impart the results and discuss the
strengths and areas of improvement. It provided the GOCCs an opportunity to be
briefed on the corporate governance practices they need to improve on as well as the
explanation on how they can mend these gaps. Likewise, samples and practices from
state-owned enterprises in other countries were shared.
TOP 5 GOCCS IN THE CGS
PDIC 94.50%
LBP 89.50%
PPMC 86.00%
PCIC 80.50%
PAGCOR 80.50%

Moving Forward
Having established the baseline, the Governance Commission and ICD will conduct
an annual CGS assessment. In pursuit of better corporate governance practices, the
GCG will continue to drive more improvement and recognize GOCCs that achieve
better scores.
STRENGTHENING THE WHISTLEBLOWING POLICY OF
THE GCG
Committed to providing sustained, transparent, responsible and accountable
governance of GOCCs, the Governance Commission embarked on enhancing its anti-
corruption efforts for the GOCC Sector.
In 2016, the Governance Commission issued its REVISED W HISTLEBLOWING POLICY
(GCG MEMORANDUM CIRCULAR NO. 2016-02) which was highlighted by the launch of its
Whistleblowing Web Portal (www.whistleblowing.gcg.gov.ph).
With the REVISED W HISTLEBLOWING POLICY, GOCCs are now required to publish in their
official websites an online link to the GCG’s Whistleblowing Web Portal. GOCCs are
likewise enjoined to establish their own whistleblowing systems as a means to inform
their respective officers and employees, and more importantly, their stakeholders, that
the Governance Commission exists not only to supervise GOCC performance, but
also to instill professional governance and restoration of the Sector’s integrity. Of equal
importance, the Whistleblowing Policy of the GCG is also applicable to the agency
itself. Suspected illegal activities of any of the officers and employees of the GCG may
also be reported by its stakeholders or any concerned party.
With the Whistleblowing Web Portal, the GCG has provided the general public, and
the officers and employees of GOCCs, with a timely, accessible, convenient yet safe
medium where they can report and submit information on suspected illegal, unethical,
and/or corrupt practices, including acts and/or omissions that violate good governance
principles, public policy and morals, as well as grossly disadvantageous activities to
the GOCC.
The provision and utilization of this automated and dedicated IT infrastructure, which
is being promoted as the primary reporting channel for whistleblowers, addresses well-
grounded concerns on anonymity, confidentiality, record-keeping and overall
efficiency in the handling of the reports in accordance with international best practices.
More importantly, it strengthens and ensures the protection of whistleblowers and
preserves the integrity of the information submitted which are of highly sensitive
nature. Information submitted through the web portal will only be accessible to select
GCG officers thereby averting unwarranted disclosures.
From the issuance of the REVISED W HISTLEBLOWING POLICY, the Governance
Commission has received at least 32 reports coursed through the various reporting
channels (i.e. web portal, face to face meetings, email, postal mail, and/or through
telephone conversation); half of which have been closed and terminated with
resolution, while the remaining complaints are at various stages of investigation: some
awaiting official comments from the concerned directors or officers for the GCG’s own
verification, and final recommendation. For complaints that involve front line services
and/or benefits processing, the GCG has now taken a proactive approach by serving
as an intermediary for both the GOCC and stakeholders to resolve any
misunderstanding and expedite the release of benefits when warranted.
With the change in Administration, the Governance Commission has experienced a
steady increase in influx of reports and complaints which can be credited to the
information dissemination of the policy, increased public awareness, referrals made
by various government agencies receiving GOCC-related reports, and overall
outspoken stance of the Duterte Administration to purge the bureaucracy of corruption.
Moving forward, the GCG plans to further capacitate its officers and employees
through relevant skill sets trainings in order for them to address whistleblowing reports
with more efficiency and effectiveness.
Moreover, the Governance Commission intends to even further strengthen its
Whistleblowing Policy by lobbying for the amendment of Republic Act No. 10149. With
the proposed amendments to its Charter, the Whistleblowing Policy of the GCG will
be institutionalized to serve as an immutable anti-corruption measure in the GOCC
Sector for years to come. The proposed amendments will feature the creation of the
GOCC Sector Integrity Office that will deal with whistleblowing reports. Equally
important, the proposed amendments will also vest subpoena powers to the GCG
thereby allowing it to obtain documents necessary for its evaluation or investigation
without obstruction coming from uncooperative individuals or groups.
It is the hope of the Governance Commission that with the REVISED W HISTLEBLOWING
POLICY, the creation of the Whistleblowing Web Portal, and the plan to amend its
Charter, the GCG can dispel apathy and promote participatory governance to the
general public, the officers and employees of various GOCCs, and other stakeholders,
and serve as their invaluable partner in fighting corruption.
GOCC SECTOR FINANCIALS
F.Y. 2015 (audited) F.Y. 2016 (restated) COA AUDIT REPORT
CLASSIFICATION OF GOCCs BY SECTORS ASSETS LIABILITIES NET WORTH ASSETS LIABILITIES NET WORTH 2015 2016
I. GOVERNMENT FINANCIAL INSTITUTIONS SECTOR
Banking Institutions
Al-Amanah Islamic Investment Bank of
1. AIIBP 779,067,064 428,833,617 350,233,447 629,796,740 331,070,120 298,726,620 Audited Unaudited
the Philippines
2. Development Bank of the Philippines DBP 504,057,966,000 466,157,051,000 37,900,915,000 536,110,553,000 491,737,585,000 44,372,968,000 Audited Unaudited
3. ***DBP Data Center, Inc. DCI 92,339,492 50,111,606 42,227,886 141,287,368 83,698,710 57,588,658 Audited Unaudited
4. Land Bank of the Philippines LBP 1,203,068,216,127 1,116,824,258,538 86,243,957,589 1,395,259,692,000 1,309,879,632,000 85,380,060,000 Audited Unaudited
***Land Bank Countryside Dev't
5. LCDFI 106,159,589 3,202,746 102,956,843 107,013,051 4,427,845 102,585,206 Audited Unaudited
Foundation, Inc.
***LBP Resources and Development
6. LRDC 583,773,904 84,649,085 499,124,819 622,415,411 91,435,082 530,980,330 Audited Unaudited
Corporation
7. Philippine Postal Savings Bank, Inc. PPSB 12,074,166,463 10,993,528,225 1,080,638,238 11,597,968,291 10,594,542,122 1,003,426,169 Audited Unaudited
8. United Coconut Planters Bank (PCGG) UCPB
Non Banking Institutions
9. Credit Information Corporation CIC 126,259,680.21 2,718,216.56 123,541,463.65 164,768,067.06 3,370,774.25 161,397,292.81 Audited Unaudited
10. DBP Leasing Corporation DBP-LC 2,042,322,462 1,048,565,615 993,756,847 2,330,251,041 1,288,654,949 1,041,596,092 Audited Unaudited
11. Home Guaranty Corporation HGC 33,381,222,645 24,982,535,528 8,398,687,117 34,128,679,581 25,228,810,981 8,899,868,600 Audited Unaudited
12. LBP Insurance Brokerage, Inc. LBP-IBI 1,223,570,258 313,322,227 910,248,031 1,241,952,658 294,552,660 947,399,998 Audited Unaudited
13. LBP Leasing and Finance Corporation LBP-LC 3,974,468,889 2,572,588,820 1,401,880,069 3,992,903,855.32 2,554,309,289.98 1,438,594,565.34 Audited Unaudited
14. Masaganang Sakahan, Inc. MSI 203,164,502 71,286,111 131,878,391 216,332,723 70,738,244 145,594,479 Audited Unaudited
15. National Development Company NDC 12,625,954,964 5,181,870,569 7,444,084,395 16,050,413,784 4,493,129,887 11,557,283,897 Audited Unaudited
National Home Mortgage Finance
16. NHMFC 39,909,945,544 37,939,793,358 1,970,152,186 35,450,886,454 34,592,789,088 858,097,366 Audited Unaudited
Corporation
17. Philippine Crop Insurance Corporation PCIC 3,068,275,192.00 1,303,081,050.00 1,765,194,142.00 2,872,967,926.00 1,585,165,789.00 1,287,802,137.00 Audited Unaudited
Philippine Deposit Insurance
18. PDIC 177,230,353,340 64,518,571,256 112,711,782,084 194,983,100,000 65,028,010,000 129,955,090,000 Audited Unaudited
Corporation
Quedan & Rural Credit Guarantee
19. QUEDANCOR 2,896,511,323.00 11,174,321,072.00 (8,277,809,749.00) Audited Unaudited
Corporation
20. Small Business Corporation SBC 4,777,304,240 2,605,147,061 2,172,157,179 4,925,920,419 2,736,769,471 2,189,150,948 Audited Unaudited
21. Social Housing Finance Corporation SHFC 17,524,012,933 15,303,093,656 2,220,919,277 20,477,912,511 16,351,028,656 4,126,883,855 Audited Unaudited
Trade and Investment Development
22. Corporation of the Philippines (also TIDCORP 1,768,055,218.00 1,129,146,997.00 638,908,221.00 1,755,064,381.00 1,357,828,180.00 397,236,201.00 Audited Unaudited
known as PhilEXIM)
Social Security Institutions
23. Employees Compensation Commission ECC 453,723,777.00 42,652,423.00 411,071,354.00 484,996,239.28 43,507,807.81 441,488,431.47 Audited Unaudited
1,013,493,438,531.
24. Government Service Insurance System GSIS 958,199,871,692.00 24,487,936,488.00 933,711,935,204.00 22,891,984,298.00 990,601,454,233.00 Audited Unaudited
00
Home Development Mutual Fund (Pag-
25. HDMF 397,642,617,556.00 50,209,038,506.00 347,433,579,050.00 439,301,628,293.00 55,319,331,198.00 383,982,297,095.00 Audited Unaudited
IBIG)
26. Philippine Health Insurance Corporation PHIC 158,764,188,596.00 26,878,802,315.00 131,885,386,281.00 162,582,664,958.55 55,411,924,948.50 107,170,740,010.05 Audited Unaudited
27. Social Security System SSS 444,399,294,452.00 8,874,917,041.00 435,524,377,411.00 478,169,296,373.00 12,604,515,890.00 465,564,780,483.00 Audited Unaudited
28. Veterans Federation of the Philippines VFP 10,602,137,769.00 30,268,124.00 10,571,869,645.00 10,771,964,433.62 32,306,811.14 10,739,657,622.48 Audited Unaudited
II. TRADE, AREA DEVELOPMENT AND TOURISM SECTOR
Trade
Center for International Trade
29. CITEM 523,016,645 80,970,108 442,046,537 518,357,464 91,331,372 427,026,092 Audited Unaudited
Expositions and Missions
30. Duty Free Philippines Corporation DFPC 3,663,661,141 2,470,561,520 1,193,099,621 3,470,913,541 2,253,367,539 1,217,546,002 Audited Unaudited
Philippine International Trading
31. PITC 5,142,327,285 4,939,665,824 202,661,461 11,117,802,496 10,839,353,288 278,449,208 Audited Unaudited
Corporation
32. PITC Pharma, Inc. PITC-PI 410,291,547 723,106,036 (312,814,489) 169,161,631 520,031,606 (350,869,975) Audited Unaudited
Area Development
Bases Conversion Development
33. BCDA 134,624,377,033 38,338,572,156 96,285,804,877 130,530,695,386 41,009,173,057 89,521,522,329 Audited Unaudited
Authority
34. ***BCDA Management and Holdings, Inc. BMHI Audited Unaudited
35. Clark Development Corporation CDC 6,367,730,854 2,524,527,198 3,843,203,657 6,520,212,108 2,784,078,923 3,736,133,185 Audited Unaudited
36. John Hay Management Corporation JHMC 210,358,868 329,012,529 (118,653,662) 214,275,105 55,792,329 158,482,777 Audited Unaudited
37. Laguna Lake Development Authority LLDA 743,766,899 196,884,462 546,882,437 846,678,840 195,709,058 650,969,782 Audited Unaudited
38. National Housing Authority NHA 105,088,909,896 15,686,836,889 89,402,073,007 117,443,308,467 16,516,363,291 100,926,945,177 Audited Unaudited
Palacio Del Gobernador Condominium
39. PDGCC 35,502,310 9,279,411 26,222,899 36,538,856 5,023,949 31,514,907 Audited Unaudited
Corporation
40. Partido Development Administration PDA 475,447,179 1,142,543,516 (667,096,337) 464,655,191 1,128,140,446 (663,485,255) Audited Unaudited
Philippine Reclamation Authority
41. PRA 31,173,846,596 12,907,866,414 18,265,980,182 29,849,285,738 11,248,353,810 18,600,931,928 Audited Unaudited
(Formerly PEA)
42. Poro Point Management Corporation PPMC 143,616,519 69,920,571 73,695,948 174,789,342 92,056,739 82,732,603 Audited Unaudited
Southern Philippines Development
44. SPDA 140,399,251 20,347,309 120,051,943 137,289,251 20,077,036 117,212,214 Audited Unaudited
Authority
Tourism Infrastructure & Enterprise Zone
45. TIEZA 15,691,293,172 2,022,858,884 13,668,434,288 21,260,784,798 5,918,146,131 15,342,638,667 Audited Unaudited
Authority (formerly PTA)
Tourism
46. Corregidor Foundation, Inc. CFI Audited Unaudited
47. Marawi Resort Hotel, Inc. MRHI Audited Unaudited
48. Philippine Retirement Authority PRetA 9,358,254,115 8,222,922,559 1,135,331,556 11,909,529,619 10,565,701,829 1,343,827,790 Audited Unaudited
 Tourism Promotions Board (formerly
49. TPB 1,750,371,884 1,462,183,105 288,188,779 1,715,933,175 1,256,341,880 459,591,295 Unaudited Unaudited
PCVC)
III. EDUCATIONAL AND CULTURAL SECTOR

Educational
50. Boy Scouts of the Philippines BSP Restated Audited
51. Development Academy of the Philippines DAP 699,827,425 415,511,702 284,315,723 797,458,272 505,987,340.00 291,470,932.00 Restated Audited
52. Girl Scouts of the Philippines GSP Audited Unaudited
Cultural

53. Cultural Center of the Philippines CCP 1,967,192,343 280,395,419 1,686,796,924 Audited Unaudited

54. Nayong Pilipino Foundation, Inc. NPF 10,220,563,562 1,018,088,013 9,202,475,549 10,192,945,912.00 978,162,456.00 9,214,783,456.00 Audited Unaudited
IV. GAMING SECTOR
Philippine Amusement and Gaming
55. PAGCOR 32,034,337,719 19,687,955,354 12,346,382,365 34,256,879,913 20,752,067,280 13,504,812,633 Audited Unaudited
Corporation
56. Philippine Charity Sweepstakes Office PCSO 20,635,608,939 17,921,307,241 2,714,301,698 15,918,835,586 12,304,533,888 3,614,301,698 Unaudited Unaudited
V. ENERGY AND MATERIALS SECTOR

Energy
57. National Electrification Administration NEA 35,954,710,416 0,908,285,312 5,046,425,104 27,038,800,937 32,033,518,603 (4,994,717,666) Audited Unaudited
58. National Power Corporation NPC 46,930,875,930 15,077,173,461 31,853,702,469 43,865,692,689 13,890,544,745 29,975,147,944 Audited Unaudited
59. National Transmission Corporation NTC 340,295,033,857 139,377,921,487 200,917,112,370 346,939,803,243 145,233,825,534 201,705,977,709 Audited Unaudited
60. Philippine National Oil Company PNOC 40,202,202,247 3,617,438,364 36,584,763,883 40,534,477,637 3,486,958,791 37,047,518,846 Audited Unaudited
Power Sector Assets and Liabilities
61. PSALM 862,280,285,396 778,189,583,443 84,090,701,953 795,167,523,182 722,573,847,981 72,593,675,201 Audited Unaudited
Management Corporation
62. PNOC Exploration Corporation PNOC-EC 15,943,193,526 3,339,793,281 12,603,400,245 15,854,156,233 2,943,527,017 12,910,629,216 Audited Unaudited
63. PNOC Renewables Corporation PNOC-RC 1,059,358,092 56,115,834 1,003,242,258 1,050,054,975 97,318,470 952,736,505 Audited Audited
64. Philippine Electricity Market Corporation PEMC Audited Unaudited
Materials
65. Batong Buhay Gold Mines, Inc. BBGMI Audited Unaudited
66. Bukidnon Forest, Inc. BFI 207,201,463 43,604,269 163,597,194 Audited Unaudited
Natural Resources Development
67. NRDC 440,347,360 289,891,580 150,455,780 Audited Unaudited
Corporation
68. National Davao Mining Corporation NDMC Audited Unaudited
Philippine Mining Development
69. PMDC 470,546,632 157,552,282 312,994,350 445,967,277 150,600,051 295,367,226 Audited Unaudited
Corporation (formerly NRMDC)
VI. AGRICULTURE, FISHERIES AND FOOD SECTOR

Agriculture and Fisheries

70. National Dairy Authority NDA 1,384,745,630.00 288,184,269.00 1,096,561,361.00 1,460,613,152.64 194,017,763.90 1,266,595,388.74 Audited Unaudited
71. National Food Authority NFA 32,058,954,451 175,811,808,842 (143,752,854,391) 29,646,126,000 174,470,754,000 (144,824,628,000) Audited Unaudited
72. National Tobacco Administration NTA 1,543,536,277.00 158,598,549.00 1,384,937,728.00 1,496,415,792.11 198,718,894.42 1,297,696,897.69 Audited Unaudited
73. Philippine Coconut Authority PCA 8,874,756,366.00 1,644,443,450.00 7,230,312,916.00 6,166,435,542.00 1,843,305,336.00 4,323,130,206.00 Audited Unaudited
Philippine Fisheries Development
74. PFDA 2,350,559,162.00 2,581,010,455.00 (230,451,293.00) 2,489,630,460.76 2,421,321,817.08 68,308,643.68 Audited Unaudited
Authority
75. Philippine Sugar Corporation PHILSUCOR 1,517,240,235.00 415,058,043.00 1,102,182,192.00 1,521,216,221.75 419,472,366.83 1,101,743,854.92 Audited Unaudited
77. Sugar Regulatory Administration SRA 510,675,506.00 86,515,505.00 424,160,001.00 1,298,475,454.34 94,385,923.54 1,204,089,530.80 Audited Unaudited
Food
78. Food Terminal, Inc. (PMO) FTI 7,304,455,510.00 267,464,777.00 7,036,990,733.00 7,406,929,631.00 283,191,450.00 7,123,738,181.00 Audited Unaudited
National Suger Development Company
79. NASUDECO Audited Unaudited
(PMO)
80. Northern Foods Corporation NFC 251,388,404.46 754,509,385.11 (503,120,980.65) 256,243,646.46 784,294,743.05 (528,051,096.59) Restated Audited
VII. UTILITIES AND COMMUNICATIONS SECTOR
Utilities
81. Cebu Port Authority CPA 6,459,745,813 728,530,716 5,731,215,097 6,574,211,607 564,756,939 6,009,454,668 Audited Unaudited
82. Civil Aviation Authority of the Philippines CAAP 27,724,042,155 3,381,146,334 24,342,895,821 38,944,816,309 14,536,106,335 24,408,709,975 Restated Audited
83. Clark International Airport Corporation CIAC 2,632,125,525 2,655,169,783 (23,044,259) 2,762,468,707 2,712,790,138 49,678,569 Restated Audited
84. Light Rail Transit Authority LRTA 69,274,740,878 65,139,884,514 4,134,856,364 69,428,413,444 66,244,732,467 3,183,680,977 Restated Audited
85. Local Water Utilities Administration LWUA 15,960,096,113.00 7,588,887,190.00 8,371,208,923.00 16,553,761,501.00 8,494,096,651.00 8,059,664,850.00 Audited Unaudited
Mactan-Cebu International Airport
86. MCIAA 17,306,602,143 623,395,626 16,683,206,517 12,568,812,867 437,368,935 12,131,443,932 Audited Unaudited
Authority
87. Manila International Airport Authority MIAA 35,149,293,747 11,478,405,742 23,670,888,005 44,044,516,030 10,893,978,925 33,150,537,105 Audited Unaudited
Metropolitan Waterworks and Sewerage
88. MWSS 58,179,808,976.00 13,223,796,717.00 44,956,012,259.00 57,592,651,266.85 12,285,319,161.64 45,307,332,105.21 Audited Unaudited
System
89. National Irrigation Administration NIA 127,800,857,479.00 109,367,590,570.00 18,433,266,909.00 162,201,096,620.76 116,959,336,098.32 45,241,760,522.44 Audited Unaudited
90. North Luzon Railway Corporation NORTHRAIL Restated Audited
91. PEA Tollway Corporation PEA-TC 215,387,476 211,157,164 4,230,312 Restated Audited
Philippine Aerospace Development
92. PADC 125,833,772 29,505,644 96,328,128 137,334,187 32,509,469 104,824,718 Restated Audited
Corporation
Philippine National Construction
93. PNCC 13,062,829,788 12,975,557,345 87,272,443 Restated Audited
Corporation (PMO)
94. Philippine National Railways PNR 51,660,000,805 26,963,309,601 24,696,691,204 Restated Audited
95. Philippine Ports Authority PPA 118,156,184,449 9,717,047,868 108,439,136,581 121,745,567,808 9,878,427,969 111,867,139,839 Restated Audited
Communications
96. APO Production Unit, Inc. APO-PUI 664,680,939 607,246,282 57,434,657 1,120,480,129 1,029,461,073 91,019,056 Restated Audited
97. People's Television Network, Inc. PTNI 1,784,626,401.00 612,558,738.00 1,172,067,663.00 1,784,626,401 612,558,738 1,172,067,663 Restated Audited
98. Philippine Postal Corporation PHLPOST 11,188,895,494 6,231,938,631 4,956,956,863 Restated Audited
GCG 2016 FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION
GENERAL FUND
As of 31 December 2016
NOTE 2,016.00 2,015.00
ASSETS
Current Asset
Cash and Cash Equivalents 5 1,254,222.83 3,207,587.39
Receivables 6 2,594,850.24 2,358,178.84
Inventories 7 1,094,287.41 1,307,315.75
Other Current Assets 9 3,095,211.97 2,576,498.99
Total Current Assets 8,038,572.45 9,449,580.97
Non-Current Asset
Property, Plant and Equipment 10 111,377,584.16 118,575,872.78
Intangible Assets 11 2,021,654.95 2,884,590.43
Total Non-Current Assets 113,399,239.11 121,460,463.21
Total Assets 121,437,811.56 130,910,044.18
LIABILITIES
Current Liabilities
Financial Liabilities 12 3,763,064.40 2,271,942.65
Inter-Agency Payables 13 1,213,342.02 4,030,435.99
Trusts Liabilities 14 1,950,140.07 1,337,423.65
Other Payables 74,943.65 75,272.64
Total Current Liabilities 7,001,490.14 7,715,074.93
Non-Current Liabilities
Total Liabilities 7,001,490.14 7,715,074.93
Total Assets less Total Liabilities 114,436,321.42 123,194,969.25
NET ASSETS/EQUITY
Accumulated Surplus/(Deficit) 114,436,321.42 123,194,969.25
Total Net Assets/Equity 114,436,321.42 123,194,969.25
Total Liabilities and Net Assets/Equity 114,436,321.42 123,194,969.25